PayPal LogoAfter eBay resolved a bad technical glitch that shut down eBay PayPal Checkout on Wednesday, PayPal experienced another glitch on Thursday in which many or all transactions were shown to sellers as being high risk.

The eBay PayPal Forum was buzzing with questions from eBay sellers about what to do with their transaction payments red flagged as Risk Alerts.

One seller posted: Just got off the phone with PP, the CS says there’s “a glitch” in their system, obviously having widespread effects. She did say she’d add my account to the trouble ticket and they’d clear the Risk Alert flags up within 48 hours (which seems like a ridiculously long time!)

Another seller posted: What a bunch of crap. This has been going on since yesterday afternoon. I called PayPal immediately after I got my first “red flag” transaction and explained to them about this “Risk Alert!” situation. This was the first time in the 11 years that I have been using PayPal & eBay that I’d seen something like this and I wasn’t about to just shrug it off. The lady on the phone acted like I was some kind of idiot. Meanwhile, none of my PayPal transactions were going through. Some of my “buy it now” auctions were still running with 0 out of X items available??? It was just a bunch of nonsense. Finally, after calling two more times, they said there was a problem with PayPal and they were working to fix it as soon as possible. (yeah right) I was advised that “PayPal Checkout” was down. Great, so how many “buy it now sales” with “immediate payment required” did I mess out on yesterday evening while you incompetent fools “rolled out” a security update that wasn’t supposed to happen???? Get with it!

FEEbay, get your act together! You’re already raping us on fees and stripping us of incentives. This is unacceptable. You’ve already taken over $400 dollars in fees from me so far this period. Put that money to use and get some people in there who know what the heck is going on!

So who’s butt will be hung out to dry if sellers ship their items and are later told the buyers account was compromised, stolen credit card, etc? I’m thinking PayPal will stick it to the seller, ‘you shipped after being warned the transaction was risky.’